Proposed changes to compensation under compulsory motor liability insurance
The State Duma is reviewing changes to the rules for compensation when the driver at fault in a crash does not carry insurance. A draft document describes adding a new section to the compulsory motor liability insurance law that would authorize compensation to be handled by a professional association of insurers in such cases.
Under current law, if the at fault driver lacks a car insurance policy, compensation comes from a special fund. The existing law covers damages to life or health only in these situations.
Reimbursement for repair costs to a damaged vehicle is handled through court proceedings. The draft law would reform this approach, aiming to move away from court-driven processes toward an administrative path managed by insurers.
There have been previous discussions about allowing the use of used spare parts within the framework of compulsory auto insurance to address shortages. The idea is to enable repairs without relying solely on new components.
The Russian Association of Automobile Insurers notes that sanctions have reduced the supply of many new imported parts and driven up prices. This affects a large share of the passenger car fleet and has led to longer delivery times for essential components. Service centers report delays and, in many cases, a 30-day window for repairs cannot be met under current conditions.
The RSA emphasizes that repairing a car under the current compulsory program is often impractical given today’s supply constraints and the extended timelines for parts delivery. This situation has sparked debate about the best way to compensate victims while keeping repairs feasible.
Why is there talk about cash payments in the context of compulsory motor insurance when repairs are in flux due to part shortages? The draft suggests shifting certain compensation responsibilities to insurer groups to speed relief to claimants, reduce court bottlenecks, and maintain fair outcomes even when repairs cannot be completed promptly.
In addition, the proposed changes would scrutinize the role of used parts for safety and liability reasons, balancing affordability with vehicle integrity. The discussion also covers how compensation payments could align with the value of losses in scenarios where repairs are delayed or impractical.
The overarching goal is to provide timely restitution to accident victims where the uninsured driver is at fault, while the insurer community adapts to current logistical challenges and sanctions. The shift would place a professional insurer association at the center of the process, guiding claims, verification, and payout decisions, and reducing the burden on courts and litigants. Credit: official draft summary.